Market research Essay Example | Topics and Well Written Essays - 2000 words

Market research - Essay Example One of the easier methods of new product development is brand extensions. In 1980, the company launched cornflakes in the UK market. Buoyed by its huge success, it has been regularly expanding this market through the strategy of brand extensions. Crunchy Nut clusters launched in 2003 was followed by Crunchy Nut Bites which hit the market in 2008. All these brands have been hugely successful for Kellogg’s. This paper traces the success story of Kellogg’s. It outlines the importance of marketing research, provides for a critique on the four-stage research process at the company and also presents the salient findings from marketing research undertaken for the Crunchy Nut Bites and the new Coco Pops brand. 2.0 Introduction Kellogg’s is a world leader in the cereal market. With nearly 500 successful brands in its portfolio, it believes in a domineering market presence through the all-important strategy of innovation complemented by marketing clout. Truly, a transnatio nal corporation, it has manufacturing facilities in 18 countries which enables it to cater, far and wide, to over 180 countries, globally. Kellogg’s introduced Crunchy Nut Cornflakes in the UK market in 1980. Over the next two decades, this brand generated huge sales of around ?68 million. In 2003, Crunchy Nut Clusters, a product extension, was launched in two varieties – Milk Chocolate Curls and Honey and Nut. This strategy was highly successful as it enabled Kellogg’s to garner annual revenues of ?21 million. Riding on this success, in 2008, Crunchy Nut Bites, arrived in the market. Achieving a record of nearly ?7 million in its very first year of full sales, the newest launch was also a major hit. The most critical factor in the success of Kellogg’s new product initiative is its elaborate, marketing research. Research is, unfailingly, undertaken for every single step of the way right from idea generation to market commercialization. Primary as well as Secondary research is carried out. Both forms of research, namely, qualitative and quantitative research is given due importance. A unique four-stage approach commencing with discovery and leading onto selection of the best product idea, is followed by transforming the idea into a complete new product and concludes with a forecast of sales for the new product. This comprehensive research framework has stood the company is very good stead, over the years. It enables it to maintain constant interaction with the most important stakeholder of any organization, irrespective of form, nature and size, the consumer. This consumer-marketer interaction and interface enables Kellogg’s to regularly tap the consumer’s pulse and identify their wants and needs. This mode of consumer empowerment translates into strong consumer advocacy of the Kellogg’s brand and goes beyond customer satisfaction leading to consumer delight. Consequently, consumer retention becomes easier and ne w customer attraction is also facilitated through product promotions and other marketing efforts. In days of reduced market research spending (Quelch 2009), its reliance and stress on the need and efficacy of marketing research, has paved the way for a sustained competitive advantage (Porter 1965), for Kellogg’s. 3.0 Contents Innovation refers to creation or introduction of something new. Though innovation and creativity is used synonymously, innovation is greater than